Why some Gen Z graduates are skipping AI degrees entirely, and getting better jobs because of it

In 2018, Carnegie Mellon University began offering the first bachelor's degree in artificial intelligence (AI) in the United States. Over the next five years, a few more universities followed suit. However, in 2025, the number of bachelor's level AI programs surged from 90 to 193, a 114 percent increase. Northwestern University introduced its AI major in 2026, and numerous other institutions joined the trend.

While universities raced to create AI degree programs, a different talent pipeline quietly absorbed AI talent. By the time Northwestern's first AI graduates graduated, the most sought-after AI jobs might have already been held by a different kind of candidate: those who skipped the degree entirely.

The numbers reveal the extent of this shift. In 2023, global enterprise AI training investments reached $4.2 billion, growing by 62 percent year-on-year. Gartner predicts that 91 percent of companies plan to increase AI learning and development spending in 2026. The AI training services market is forecast to surpass traditional IT training this year. This growing demand for AI talent is not a result of a broken system but a result of a new pipeline.

Corporate training programs, such as IBM's New Collar apprenticeship, JPMorgan Chase's prompt engineering training, and Ikea's AI literacy training, offer paid work experience and structured skill development to Gen Z candidates. In contrast, traditional AI degree programs burden students with debt, unpaid internships, and unpreparedness for real-world work.

A Gen Z candidate joining a corporate apprenticeship program walks away with real work experience, a tailored skill set, and an established relationship with the employer within two to three years. In contrast, a student pursuing a four-year AI degree faces significant debt and limited practical experience.

As universities cannot adequately address the real-world skills required in the AI economy, corporate apprenticeships provide a faster and more relevant solution. Founders in Asia should reconsider their approach to talent acquisition, focusing on candidates with proven work experience and applied projects rather than relying on university credentials.

This shift towards the Permanent Pipeline—corporate training programs that operate on faster cycles and provide real, paid work experience—signals a structural change in how AI talent enters the workforce.